The U.S. multifamily market has shown exceptional growth in terms of investment during the first half of 2022, according to data from Yardi Matrix. With an overall national multifamily sales volume exceeding $101 billion, surpassing the $67 billion recorded in the same period last year, it is clear that this sector is thriving. The average price per unit has also seen a significant increase of 28.4 percent year-over-year, reaching a new high of $218,377. Furthermore, the number of properties traded has risen, with 2,961 properties changing hands in 2022, compared to 2,362 in 2021.
The Top 10 Multifamily Markets
In this article, we will take a closer look at the top 10 multifamily markets based on their investment volume. These markets account for nearly half of the national sales activity, with a combined sales volume of $48 billion. It is worth noting the strong rebound of gateway markets, such as New York and Los Angeles, which have replaced Tampa and Raleigh from the previous year's ranking.
1. Phoenix
Phoenix is a market that has shown remarkable resilience and recovery from the effects of the pandemic. With its multifamily investment volume reaching $7.4 billion in the first half of 2022, a significant increase from the previous year, it is evident that investor activity is on the rise. The average price per unit in Phoenix has seen the largest year-over-year increase in this ranking, at 58.3 percent, reaching $339,622.
2. Atlanta
Atlanta has a balanced economy that has helped it maintain its position as an attractive multifamily market. With an investment volume of $7 billion in the first six months of 2022, it has outperformed the previous year. The average price per unit in Atlanta has risen by 27 percent year-over-year, reaching $204,312.
3. Dallas
Dallas, the leading market of the previous year, has continued to grow due to strong in-migration and company expansions. With a multifamily sales volume of nearly $6.6 billion through June 2022, it has surpassed the previous year's volume. The average price per unit in Dallas is the second lowest in this ranking, at $186,049.
4. Houston
Houston, another prominent market in Texas, has recorded a multifamily sales volume of $6.4 billion in 2022's first half. This is a substantial increase compared to the same period last year. The average price per unit in Houston has risen by 25.6 percent year-over-year, reaching $155,780.
5. New York
New York has made its entry into this ranking, with a multifamily sales volume of $4 billion. This market has shown strong growth compared to the previous year. Despite a decline in per-unit prices, New York remains the most expensive market, with an average price per unit of $642,482.
6. Orlando
Orlando has climbed two positions from last year's ranking, with a multifamily sales volume of $3.8 billion through June. This is a significant increase from the previous year. The per-unit price in Orlando has seen a year-over-year gain of 32.6 percent, reaching $253,975.
7. Los Angeles
Los Angeles, as another gateway market, has recorded a multifamily sales volume of $3.7 billion in the first half of 2022. This represents a substantial increase compared to the same period last year. The average price per unit in Los Angeles has risen by 17.9 percent year-over-year, reaching $444,200.
8. Miami
Miami, a market in Florida, has recorded a sales volume of nearly $3.6 billion. Although it has dropped two positions from the previous year, it still shows growth. The average price per unit in Miami has seen a significant year-over-year hike of 43.6 percent, reaching $350,816.
9. Washington, D.C.
Washington, D.C. has also dropped two positions from the previous year, with a multifamily sales volume of $2.6 billion. Despite a decrease in volume, there has been an increase in the number of properties changing hands. The average price per unit in the metro has risen by 6.5 percent year-over-year, reaching $276,249.
10. Denver
Denver completes the ranking with a multifamily sales volume of $2.6 billion. This represents a decrease compared to the previous year. The average price per unit in Denver has seen a year-over-year increase of 14.2 percent, reaching $340,687.
These findings are based on Yardi Matrix's comprehensive coverage of multifamily properties across the United States. It is clear that the multifamily market is experiencing robust growth and attracting substantial investments.
